Company Formation in Lithuania
Lithuania is one of the most modest countries of the European Union. However, it does not mean at all that there are no valuable advantages for businessmen.
Advantages of Lithuania
Lithuania is one of the most modest countries of the European Union, but it does not mean that it has not prepared valuable advantages for businessmen.
In particular, the process of company registration in Lithuania is known for several main benefits for your business:
- Lithuania will allow access to the European market for your business.
- Protection of your company against annoying double taxation. Russia is among 40 countries that Lithuania signed the Agreement with.
- The registration procedure lasts for no longer than a day.
- The amount for company prolongation shall be paid next year; down payment is not required.
- Stable economics that jeopardized to its best since its first day of EU membership.
If you have not heard about Lithuanian offshore area till now, it is worth considering the country as a place for business registration, as zero tax rates apply therein, either. They will not normally exceed the permissible rates and will be beneficial at your stage of business. Remember that you deal with the most accessible registration throught Europe. The point is that laws in the country commit to the development of foreign business.
The size of the authorized stock capital in this jurisdiction should be around 2900 Euro, and the founder may be a non-resident of the country. The client’s company in Lithuania will be serviced in line with the UAB form publicly known. A good name is very important to choose taking into account the spelling applicable in the country. Most experts focus on that feature.
Why Do Foreigners Create a Company in Lithuania?
Reasons may vary. Someone strives for the residence permit, other seek for the transit point for their business in the EU. Moreover, the trading activity registered in Lithuania facilitates entering the EU market. Therefore, it is not a strange that hundreds of holdings are incorporated there year by year. In fact, Lithuania allows trading operations with redirection to other countries.
What Does The Registration Process Look Like?
Choose a name and experts will take over the registration of the new brand with the registry. As the name of the company appears in the Registry of Lithuania, the client may pay 50% down payment for services. The remaining 50% will be paid as documents are received. Experts will pay all duties on their own; they will complete the adequate registration of a legal address in the country. DHL courier will deliver the package of documents at your address.
The tax system of Lithuania is as loyal as possible. The rate is low here for practically any area of activity. You will lose no more than 5%. You can also try to exempt yourself from the tax on dividends. The thing you need to do is to own a company with over 1 year of registration and withdraw it from offshore.
Also, the business owner should keep records that are often disregarded by offshore owners. Anyway, you have to do it. If you want to avoid it, you’d better hire an accountant from Lithuania. The latter should prepare company reporting and keep record of company data as they appear.